As COVID-19 pandemic directly impacted how consumers interact with financial institutions and how the institutions themselves operate, AppsFlyer, the global marketing measurement leader, has released its 2021 edition of The State of Finance App Marketing report.
According to the report, Financial Technology (FinTech) apps are in high demand, experiencing a 132% leap globally in downloads in the last two years. Sub-Saharan Africa saw impressive growth, with installs in Nigeria climbing 160%, up 100% in Kenya and rising by 52% in South Africa.
Commenting on the growth of finance apps across Africa, Regional Vice President, EMEA & Strategic Projects, AppsFlyer, Daniel Junowicz said: “The COVID-19 pandemic rapidly accelerated the adoption of financial technology globally and in emerging markets especially, finance apps helped millions of consumers and businesses remain connected. This trend is likely to continue and understanding how to best market their apps will be key to African businesses standing out from the crowd and growing their customer base.”
He continued, stating that with this year heading for a record with total spend globally, reaching no less than $1.2 billion in Q1 alone, it is believed that combining different types of marketing activities in addition to improving the registration funnel by optimizing and shortening the time from install to registration will give marketers the edge to utilize their 2021 budget to the fullest.”
Downloads of finance apps have shot up over the last year. With 56% of the population in Nigeria ‘unbanked’, many are turning to apps to access key financial solutions including Loans (43.3%); Financial Services (35.6%); and Investments (20.3%). Nigeria’s Cost Per Install is up 70% since Q2, leading to a spike in spend, especially in Q1 2021 when budgets almost tripled. While each of the three key regions have experienced growth in marketing activity in the last year, Kenya’s overall growth in the last two years has fallen.
Some of the Key Global Insights indicate that digital banking installs went up to 45%, while traditional banks gained 22% in 2021. Finance app installs increased 20% overall, but financial services and traditional banking app installs saw only a 15% increase between Q1 2020 and Q1 2021. However, only in the first quarter of 2021, traditional banks picked up speed with a 22% rise in installs.
Other insights reveal 3.3x growth in the number of remarketing conversions between Q1 2020 and Q1 2021. Following a 32% drop in spend in Q2 of 2020, efforts rebounded in Q3 and with rising user acquisition costs, marketers increased activity in remarketing, which soared 3x by Q1 2021. Overall, the growth path of non-organic installs continued upward, hitting 172% growth between 2019 and now.
Also demand for Finance apps is rising across the globe. 29 of the top 40 finance markets (by app installs) enjoyed a growth of at least 20% YoY, however it was the developing markets that dominated the number of installs. The average number of downloads in developing markets was 70% higher than the average in developed markets, with India, Brazil and Indonesia making up almost half of the global number of downloads.
Head of Content & Mobile Insight, AppsFlyer, Shani Rosenfelder explained: “FinTech experienced rapid digital transformation over the last year, with the pandemic leading to a shift in mindset even for those that have been slow to adapt.”
He recommendation: “Marketers should strive for efficiency with their spend by following the rising Cost Per Install trend and focusing on user acquisition to meet new demand. Marketers should also explore more affordable remarketing campaigns to keep their brand top of mind amid rising market competition.”
